Telefónica Móviles completes merger with Colombia Telecomunicaciones

Telefónica has completed the merger of its Colombian subsidiary Telefónica Móviles Colombia and state-owned Colombia Telecomunicaciones as the carrier continues to tackle its debt.

The merger will allow Telefónica to reduce its net financial debt in the second quarter of 2012 by approximately €1.45 billion, up on previous estimates by the group of €1.3 billion.

The combined entity is claimed to be the second largest integrated operator in the country and will be 70% Telefónica owned and 30% state owned.

Telefónica said that the combined entity would offer a full range of telecoms services with the larger size of the company enabling the “capture of important synergies in the coming years”.

The completion of the merger process is part of a global strategy by the Spanish carrier to reduce its €57 billion net debt. In June the company said that it had reached an agreement to sell half its stake in China Unicom for approximately €1.1 billion.

At the end of May the company also said that it would pursue an IPO of its German business, which is estimated to be worth as much as €10 billion.